Hammerson has agreed to buy all the shares issued for Intu in a transaction valuing the retail centre giant, which also operates Lakeside in Essex and The Trafford Centre in Manchester, at £3.4bn or roughly 253.9p per share.

“The financial strength of the enlarged group and its strong leadership team will make it well-placed to take advantage of higher growth opportunities on a pan-European scale.”

The groups plan to slash costs, offload at least £2bn worth of assets and target high growth markets such as Spain and Ireland.

John Strachan, chairman of Intu, said: “A combination of both Intu and Hammerson will create a more resilient, diversified and stronger group that we believe will benefit all our stakeholders.

“Intu offers high-quality retail and leisure destinations in the UK and Spain, which when merged with Hammerson’s own top-quality assets in the UK, in France and in Ireland, present a highly attractive proposition for retailers and shoppers in Europe’s leading cities.”

The acquisition will result in Hammerson shareholders owning 55% of the combined firm and Intu investors the remainder.

The deal comes at a time when consumer confidence has taken a pounding following the Brexit vote, resulting in a sharp decline in retail sales.

However, shopping centres in city locations have tended to fare better than high streets during economic downturns.

Mr Atkins added: “This marks an exciting milestone in the history of Hammerson. Bringing together the high-quality portfolios of both companies establishes Hammerson as a larger, leading European retail REIT, enhances shareholder returns and supports opportunities for long-term growth.

“The acquisition creates a leading pan-European platform of desirable retail and leisure destinations which are better positioned to serve the needs of our retailers, excite our customers and support our partners and communities.”